If you are one of the fortunate (or unfortunate, depending on the market cycle) few to own a couple of properties, you would have had first hand experience at managing and letting them. After a while, especially if you hold a day job, it can get rather nerve wrecking. I'm talking about needy tenants and those who are not used to taking care of stuff with their own hands.
"Oh, the bulb just blew, and I'm scared of heights. So can you please make a trip and help me replace it?"
"There was a power trip! What should I do! HELLLLLLLLLLLLLPP!!!!!!!!"
"Secondhand smoke from the neighbour kept drifting into my bedroom, can you come down and speak to them a bit?"
Sometimes, making the trip and spending the money on cabs (if you are lucky to get one quickly) for groceries shopping can make one feel weary and drained. Thank goodness for the internet - major grocers have an online presence so much so you can easily find most if not all of the goods for your shopping pleasure. All you need is a few clicks and your credit card and what you need will appear at your doorstep soon enough. Just pay for the nominal delivery fee.
Likewise, if you do not want any of the hassle dealing directly with needy tenants, you can spend some on commissions and engage a real estate agent to handle the whole process from soliciting, viewing, closing and all the follow up after moving in. You will still get your rental income right on time and you never even have to meet your tenant ever, if you prefer!
Wednesday, June 13, 2012
Of Being A Landlord and Groceries Management
There are indeed similarities between managing your investment properties and groceries.
If you know that you're gonna use the same brand or kinds of flour, oil, seasoning and spices to prepare your meals every other day or so, it makes sense to buy in bulk a month's supply at one go. Many grocers have bulk discounts or special 'day of week' promotions. Once you have enjoyed the economy of scale of bulk purchase, obviously as foods are eventually perishable and have expiry dates, you will need to use them up within that certain time period. Otherwise stuff goes to waste. In the example above, if you're say sick of bread, the ingredients may be used to dish up something quite different, for example, pies or even cakes. Just so they don't go to waste.
In the same vein, once your investment property is ready to let, every day it is empty is money down the drain, especially if it's mortgaged. It's money out and nothing in. So instead of insisting on getting a tenant that is willing to pay the rent you expect, why not consider dropping it by say 10% - who knows, you may seal a deal right away. Dollars and cents become much more sensitive issues to the average tenant in tough times like now. The month or months of vacancy would be more than made up for with the mere 10% drop in income, more so if the signed lease is for more than year.
If you know that you're gonna use the same brand or kinds of flour, oil, seasoning and spices to prepare your meals every other day or so, it makes sense to buy in bulk a month's supply at one go. Many grocers have bulk discounts or special 'day of week' promotions. Once you have enjoyed the economy of scale of bulk purchase, obviously as foods are eventually perishable and have expiry dates, you will need to use them up within that certain time period. Otherwise stuff goes to waste. In the example above, if you're say sick of bread, the ingredients may be used to dish up something quite different, for example, pies or even cakes. Just so they don't go to waste.
In the same vein, once your investment property is ready to let, every day it is empty is money down the drain, especially if it's mortgaged. It's money out and nothing in. So instead of insisting on getting a tenant that is willing to pay the rent you expect, why not consider dropping it by say 10% - who knows, you may seal a deal right away. Dollars and cents become much more sensitive issues to the average tenant in tough times like now. The month or months of vacancy would be more than made up for with the mere 10% drop in income, more so if the signed lease is for more than year.
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